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9.
CONFIDENTIAL
in rates and property tax. I have the
uncomfortable feeling that while Government has acted
correctly in all these fields, and in the best
interests of Hong Kong, we have put the squeeze on
such a wide section of the population at the same
time that one false move could cause serious trouble.
Though I had to some extent foreseen such a situation,
the strength and breadth of criticism has come as
an unpleasant shock. It will not deter the
Government from its policies or its time table, but it
does indicate that the pace of reform announced was
pitched at the maximum level short of unacceptable
controversy.
10.
Though there is complete agreement
between your Department and this Government on the
policies and programmes that must be implemented
in Hong Kong, and though these provide good answers
to reasonable criticism, I remain concerned at the
dislike and suspicion of the Colony in some quarters
in the UK. I am convinced that the most effective
counter would be a substantial increase in British
exports, and with so much UK capacity under-used this
is surely the right time to make progress. I and
my officials lose no opportunity of emphasising to
Hong Kong industrialists the importance in their own
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